Australia plans to promote tourism, it wants to subsidize domestic flights

Australia will financially support the two largest airlines, subsidize around 800,000 domestic flights and offer cheap loans to smaller tourism companies. These steps are part of a planned package of support for tourism worth Australian 1.2 billion (777.2 million euros). Tourism is one of the key sectors of the Australian economy. It is worth more than AUD 60 billion and employs around 5% of the country's total workforce. However, the onset of the new coronavirus pandemic early last year hit the sector hard as the government closed its borders in March 2020 in an effort to slow the spread of the virus. Like other governments, Australia has supported sectors through a job retention program. However, the program expires this month, so the government is coming up with another solution to support tourism. According to Reuters, Australian Prime Minister Scott Morrison plans to release a new stimulus package on Thursday (March 11). It should include subsidies for about 800,000 domestic flights between April 1 and July 31, with the government funding 50% of the value of flights to 13 destinations. In addition, Morrison plans to announce that Canberra will provide financial support to key airlines Qantas and Virgin Airways for the period from April 1 to October 31. After this date, international air traffic should be resumed. At the same time, Australia plans to offer tourism companies, such as tour operators, loans of up to AUD 5 million. In their case, a two-year deferral of repayment is envisaged. The government expects the aid program to significantly increase Australia's interest in domestic holidays, which is key to the recovery of tourism.